Danakali Share Discussion Threads

[recruiter] 01/2/2002 13:29

to be is to do ---- Niche
to do is to be --- Shakespeare
do be do be do --- Sinatra

& furthermore, my own thoughts are that this will in the very short term hit 46, then 47 when SSB will come in to play. Then the fun north should begin.

[redman2] 01/2/2002 13:10

357, we're all hoping to see that sort of price by the end of the day. As long as there is no more heart stopping tree shaking on yesterday's scale as I'm not sure my heart could take it!

[trifin] 01/2/2002 13:08

Has anyone got a rough idea of what they would expect the p/e ratio of this company to be now?

Many thanks,

Andy

[357aman] 01/2/2002 13:03

I am hopeing to see 49p today!!

[mooch] 01/2/2002 11:59

Is it possible to buy/sell without going through a mm?

[cossie] 01/2/2002 11:52

L2

WINS 43-46
NITE 43-46
BGMM 43-46
MLSB 42-45
SSSB 37-47

[redman2] 01/2/2002 11:21

Cheers Serious, they are really bullish across the pond. Hopefully that will spill over once US opens

[webley] 01/2/2002 10:59

Anybody got an answer yet to my earlier post about the short on www.viwes.com?

[serious punter] 01/2/2002 10:53

redman2

In aswer to your question, yes. I think we are waiting for the US today.

I expect DANKY to take off again today.

Here's a link to yahoo bb for DANKY. Very bullish

[oaklandsway] 01/2/2002 10:46

Jimmy,
Good summary by Sharecast. The original statement below tells us that Danka could make much more profit when market trends can come back to be positive in line with strengthening of global economic. Noted also that productivity of sales force in US is very high and the CEO needs to develop the same level of productivity in their branches outside USA to create very healthy company.

As I said many times here that I will keep a little share to be tested at £1.


"Total revenue for the third quarter of fiscal year 2002 declined by $24.4 million, or 5.7%, to $400.6 million compared to $425.0 million in the prior year third quarter. This decline was primarily due to a decrease in service and rentals in the U.S. resulting from the continuing transition from analog to digital equipment, negative market trends, and a weakening of global economic conditions. Worldwide, retail equipment sales were down $6.8 million as compared to the prior year third quarter. Retail equipment sales in the U.S. were flat in the third quarter as compared to the prior year third quarter despite a 46% reduction in the number of sales representatives in the U.S. This reduction was partially offset by a 49% increase in U.S. sales productivity (i.e. hardware sales divided by the average number of sales representatives) and the addition of a large national account. The reduction in U.S. sales representatives is part of the Company's strategic plan to improve sales productivity while reducing operating costs. "

[recruiter] 01/2/2002 10:45

for what it's worth. I have watched & sometimes traded these since they were 12p.. Never really sure that the company would turnm things around.
Yesterday I bought in to keep.
It's clear that they have turned a very sharp corner, debt down by half, profits rising & enhanced eps.....
all in all, you have an excellent recovering business which at present levels is very cheap IMHO.
What would be the icing on the cake, is institutional interest from this side & over the pond. Now the business has turned around, who can say if the company won't be doing any presentatons to the fund managers soon ?

[dsmith626] 01/2/2002 10:39

Seems to be mostly sellers, thought today seems quiet. Not much volume at all. Waiting for the US market? Price down a bit.

[redman2] 01/2/2002 10:30

Serious, do you think that this will be recurring patern with Danka.......MMs short of stock, tree shaking, price drops and then rises again once they have retrieved enough stock?

If so then surely it represents some great day trading opportunities for all of us

[serious punter] 01/2/2002 10:26

dsmith626

Sadly it applies to all stocks, but that's the MMs job to make money

[dsmith626] 01/2/2002 10:23

SP. Fair enough I guess, but they do that on all shares supposedly. Why is it only this stock that investors fall for it?

Bit quiet today...

[serious punter] 01/2/2002 10:18

dsmith626

Because they shake the tree and nervous types bail out. Classic was yesterday, people bailed out because the MMs dropped the prices, then it rose back again to +2p on the day.

[dsmith626] 01/2/2002 10:03

Question, if the MMs are always short of stock, why do we never see M trades?

[cinoib] 01/2/2002 09:52

Morning all, Pleased I missed the action yesterday, otherwise I might have been pulling my hair out. Thunderstorm previous night blew the modem, have just come back on line, so spent 1/2 the day on the phone to my broker seeing what was happening. I only found out about the collapse in the price after it had gone back up. When I found out how quick it had recovered and what the results were I dipped in and bought another 10k so am praying the yanks like what came out and keep buying, then I can repay my mortgage.

[jimmy28] 01/2/2002 09:51

First post - good morning all

Some coverage courtesy of Sharecast/N-V

Jimmy28



Danka returns to profit

By Joanne Offer
Thu 31 Jan 2002


Office equipment supplier Danka Business Systems has posted a third-quarter pre-tax profit of £333,000, a mighty improvement from a loss of £17.6m in the same period last year. The turnaround came from cost cuts and reduced interest payments, rather than improved sales. DNK - Danka Bus Sys


Turnover actually dropped 6% to £277.2m for the three months to 31 December 2001, against £294.1m previously. Danka blamed a decrease in US service and rentals caused by the transition from analogue to digital. It also cited negative market trends and weakened global economic conditions.

Gross margins improved to 35.2% from 34.2% thanks to a drop in the cost of sales. Danka cut US staff levels by 46%.

Operating profit was £7.2m compared with a £6.7m loss previously. The comparative period included exceptional restructuring costs of £7.5m.

Pre-tax profit was £333,000, against a loss of £17.6m. The difference was largely helped by Danka's success in reducing its net interest payable from £12.9m to £3.2m.

For the nine months to December 31, pre-tax profit was £151.1m. This included the £119.2m sale of Danka Services International and an exceptional gain from the early retirement of £33m debt.

Excluding exceptionals, nine-month operating profit was £16.9m against £11.8m previously. Turnover dropped 9% to £824.4m from £907.7m earlier.

Financial officer Mark Wolfinger said: "Due to our financial restructuring, the sale of DSI and our continued progress in generating free cash flow from improved operations, total debt has decreased by £272.5m or 54.2% since the beginning of the fiscal year."

Danka's shares were up 1p at 42.5p in mid-afternoon trade, valuing the company at £99m. There are no forecasts available. The company's share price hit a high of 207.5p in December of 1999.

[serious punter] 01/2/2002 09:30

Mornin All

A bit slow, but IMO momentum will build. Notice they are paying a premium on the bid - they probably want stock to fill some large orders like the end of day 100k buy T yesterday. Also across the pond will drive up things later

[redman2] 01/2/2002 09:09

Could someone explain to me why the MM's would ever be short of stock and in Danka's case, always short of stock!
Do MM's have specified level of stock which they buy and sell?

[recruiter] 01/2/2002 09:03

spread is killing this stock, MM's are possibly doing it cos they are short.

Was there any press coverage today ?

[redman2] 01/2/2002 09:02

Johnny, I reckon they need to narrow the spread before we see some decent buying.

[johnnyamerica] 01/2/2002 08:57

Morning. Yes, its been priced up for today. Well, we should at least see 53 sometime today, no?